WVC 33 - 8 - 6
§33-8-6. Loans to officers and directors.
(a) Except as provided in subsection (b) of this section, an
insurer may not, without the prior written approval of the
commissioner, directly or indirectly:

(1) Make a loan to or other investment in an officer or
director of the insurer or a person in which the officer or
director has any direct or indirect financial interest;

(2) Make a guarantee for the benefit of or in favor of an
officer or director of the insurer or a person in which the officer
or director has any direct or indirect financial interest; or

(3) Enter into an agreement for the purchase or sale of
property from or to an officer or director of the insurer or a
person in which the officer or director has any direct or indirect
financial interest.

(b) For purposes of this section, an officer or director may
not be determined to have a financial interest by reason of an
interest that is held directly or indirectly through the ownership
of equity interests representing less than two percent of all
outstanding equity interests issued by a person that is a party to
the transaction, or solely by reason of that individual's position
as a director or officer of a person that is a party to the
transaction.

(c) This subsection does not permit an investment that is
prohibited by section five of this article.

(d) This subsection does not apply to a transaction between an insurer and any of its subsidiaries or affiliates that is entered
into in compliance with article twenty-seven of this chapter, other
than a transaction between an insurer and its officer or director.

(e) An insurer may make, without the prior written approval of
the commissioner:

(1) Policy loans in accordance with the terms of the policy or
contract and section nineteen of this article;

(2) Advances to officers or directors for expenses reasonably
expected to be incurred in the ordinary course of the insurer's
business or guarantees associated with credit or charge cards
issued or credit extended for the purpose of financing these
expenses;

(3) Loans secured by the principal residence of an existing or
new officer of the insurer made in connection with the officer's
relocation at the insurer's request, if the loans comply with the
requirements of section fifteen or twenty-eight of this article and
the terms and conditions otherwise are the same as those generally
available from unaffiliated third parties;

(4) Secured loans to an existing or new officer of the insurer
made in connection with the officer's relocation at the insurer's
request, if the loans:

(A) Do not have a term exceeding two years;

(B) Are required to finance mortgage loans outstanding at the
same time on the prior and new residences of the officer;

(C) Do not exceed an amount equal to the equity of the officer in the prior residence; and

(D) Are required to be fully repaid upon the earlier of the
end of the two-year period or the sale of the prior residence; and

(5) Loans and advances to officers or directors made in
compliance with state or federal law specifically related to the
loans and advances by a regulated noninsurance subsidiary or
affiliate of the insurer in the ordinary course of business and on
terms no more favorable than available to other customers of the
entity.

Note: WV Code updated with legislation passed through the 2014 1st Special Session
The WV Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.